After the well-known crypto-suppression launched by the Chinese government four years ago, it appears that there is now a change in the tone of the country’s central bank. At least that is what was recently proposed by the Deputy Governor of the People’s Bank of China (PBoC).
The Central Bank explains its regulatory framework on Cryptos will remain unchanged
During a panel hosted by CNBC at the Boao Forum for Asia, Li Bo now names bitcoin (BTC) with the term “investment alternative” for the first time since the repression. However, he did make some explanations about the significance of his attitude towards cryptocurrencies:
We consider Bitcoin and stablecoin as crypto-assets. These are investment alternatives. It is not a currency in itself. And so, the most important role we see ahead for cryptocurrencies, the main role is alternative to investments.
Such a statement implies an unprecedented change in Beijing’s tone on cryptos, even with experts quoted by CNBC viewing these comments as ‘progressive’, as the country is also paving the way for the coming digital yuan.
Li continued to elaborate on cryptocurrencies as investment alternatives:
Many countries, including China, are still researching and reflecting on what kind of regulatory requirements. Maybe minimal, but we need to have some sort of regulatory requirement to prevent this. The speculation of such assets to create serious financial stability risks.
He nevertheless made it clear that the PBoC would keep its regulatory framework on cryptos unchanged.
PBoC expects to develop cross-border digital yuan solutions
During the panel, the newly appointed central bank’s deputy governor commented on the digital yuan. He pointed out that “our goal is not to replace the US dollar or any other international currency, because our goal is to make the market select and facilitate international trade and investment.”
That said, Li revealed that the PBoC has some plans to develop cross-border solutions with the ‘e-yuan’:
Our focus is once again that we first want to establish a very solid local e-yuan and build a healthy ecosystem, while at the same time working with our international partners. Hopefully in the long run we will also have a cross-border solution.
What do you think of the PBoC Deputy Governor’s words on cryptos? Let us know in the comments below.
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